Quality of Schooling, Returns to Schooling and the 1981 Vouchers Reform in Chile

This paper exploits unique information on cognitive ability to examine the importance of schooling and non-schooling cognitive skills for heterogeneous individuals using instrumental variables estimation. Using a binary instrument based on the 1981...

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Bibliographic Details
Main Authors:	Patrinos, Harry Anthony, Sakellariou, Chris
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACADEMIC OUTCOMES ACHIEVEMENT TEST SCORES ADULT LITERACY ADULT POPULATIONS AVERAGE TREATMENT EFFECT BASIC EDUCATION BASIC SCHOOL AGE BASIC SCHOOLING BASIC SKILLS BOOKS AT HOME COGNITIVE ACHIEVEMENT COGNITIVE SKILLS COLLEGE EDUCATION COMPULSORY BASIC EDUCATION COMPULSORY SCHOOLING DROPOUT RATE EARLY CHILDHOOD ECONOMIC DEVELOPMENT ECONOMICS OF EDUCATION EDUCATION INVESTMENTS EDUCATION POLICY EDUCATION REFORM EDUCATION REFORMS EDUCATION STATISTICS EDUCATION SYSTEM EDUCATION SYSTEMS EDUCATIONAL ATTAINMENT EDUCATIONAL EVALUATION EDUCATIONAL LEVELS EDUCATIONAL QUALITY EDUCATIONAL REFORM ENROLLMENT RATES HIGH SCHOOL HIGHER EDUCATION HIGHER LEVEL OF EDUCATION HUMAN CAPITAL HUMAN DEVELOPMENT INTERVENTIONS LEARNING LITERACY SKILLS LITERACY SURVEY LITERACY TESTS MUNICIPAL SCHOOLS NUMBER OF STUDENTS PAPERS PARENTAL EDUCATION PRIMARY SCHOOL PRIMARY SCHOOL AGE PRIVATE SCHOOLS PROVISION OF EDUCATION PUBLIC EDUCATION PUBLIC SCHOOL PUBLIC SCHOOLS PUPILS QUALITY SCHOOLING QUALITY SCHOOLS RATES OF RETURN READING READING BOOKS REPETITION REPETITION RATES RETURN TO EDUCATION RETURNS TO EDUCATION RURAL AREAS SCHOOL AGE SCHOOL AGE STUDENTS SCHOOL ATTENDANCE SCHOOL CONSTRUCTION SCHOOL ENROLLMENT SCHOOL EXPANSION SCHOOL PARTICIPATION SCHOOL QUALITY SCHOOL REFORM SCHOOL STUDENTS SCHOOL SYSTEM SCHOOLING SCHOOLS SECONDARY EDUCATION SECONDARY SCHOOL SECONDARY SCHOOL AGE SECONDARY SCHOOL ENROLLMENT SECONDARY SCHOOL STUDENTS STUDENT CHARACTERISTICS STUDENT INTAKE TYPES OF SCHOOLS UPPER SECONDARY VOUCHER SYSTEM VOUCHERS
Online Access:	http://documents.worldbank.org/curated/en/2008/05/9429496/quality-schooling-returns-schooling-1981-vouchers-reform-chile http://hdl.handle.net/10986/6721

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Summary:	This paper exploits unique information on cognitive ability to examine the importance of schooling and non-schooling cognitive skills for heterogeneous individuals using instrumental variables estimation. Using a binary instrument based on the 1981 reform in Chile, the authors find that the main beneficiaries of the reform were those who at the time were pupils in basic schooling (ages 6-13). For this treated group of pupils, only a negligible part of the estimated return to schooling is due to classical ability bias. The labor market reward to an additional year of schooling is a measure of the "true" non-cognitive return to schooling. However, once the treated group is expanded to include secondary school students, the pure return to schooling decreases dramatically, while the return to schooling cognitive and non-schooling cognitive skills increases accordingly, suggesting that a large part of the estimated return in an earnings function is due to classical ability bias. For this treated group (mixture of basic school and secondary school age students), the labor market rewarded cognitive skills (especially those acquired through schooling) significantly.

Quality of Schooling, Returns to Schooling and the 1981 Vouchers Reform in Chile

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